The current economic downturn is having a huge impact on IT departments everywhere. Financial crises often result in sharp increases in business activity, placing an even greater burden on IT resources, and forcing them to find new ways to boost productivity and slash expenses.
At times like these, companies must consider leveraging applications delivered via a software-as-a-service (SaaS) model. SaaS is a lot more than CRM applications and includes traditional IT applications such as PC and Software Inventory, IT Asset Management and Software License and Contract Management. SaaS is empowering IT teams to achieve and sustain efficiency and quality, while facilitating the kind of cost-effectiveness that becomes a top priority during a recession.
Founded on the simple cost-sharing approach introduced by utility companies decades ago, SaaS allows businesses to “plug” into the service provider grid instead of building and running their own software and tools, and provides a faster, more economical way for organizations to utilize software. This is particularly valuable during economic uncertainty, because it eases the impact that a financial crisis can have on IT operations by:
- Offering lower upfront costs. SaaS makes it more affordable for budget-conscious companies to implement the new applications they need to execute on their “recession-proofing” plans.
- Freeing IT staff from administering in-house solutions, so they can focus on strategic projects aimed at helping the business through the economic downturn.
- Ensuring continuous service quality, even as business activity – and the demand it places on technology solutions – peaks.
- Reducing the costs associated with licensing and maintenance.
- Providing optimum flexibility. As companies downsize – then expand again once things look up – SaaS allows them to minimize waste by instantly reducing or increasing the size and scope of their solution, at any time.
In today’s challenging economy, as companies aggressively implement cost-cutting measures, IT organizations that leverage SaaS-based solutions will realize tremendous cost savings, while continuing to support the business’ needs in the most efficient and effective manner possible.